USD1 Threatens Stablecoin Titans with Political and Community Support

The market value of the USD1 stablecoin, issued by Trump-affiliated World Liberty Financial Inc. (WLFI), rose from $128 million on April 27 to over $2.1 billion by early May.

In less than a week, USD1 rose 1,540%, making it the seventh-largest stablecoin worldwide.

The increase followed a series of huge token mints on BscScan, Binance Smart Chain's block explorer, where most USD1 tokens are produced.

Several major mintings exceeded $90 million between April 27 and 30. These occurrences caused a supply increase that pushed USD1 beyond $2 billion on April 30, according to CoinGecko, CoinMarketCap, and DefiLlama.

WLFI Stablecoin Rises After $2 Billion Investment
On May 1, Abu Dhabi-based investment company MGX announced intentions to settle a $2 billion Binance investment with USD1. This drove most of this rise.

USD1 started in April after WLFI, backed by Trump allies, announced it in March. The coin is backed by short-term U.S. Treasuries, USD bank deposits, and cash equivalents to preserve a 1:1 peg to the dollar.

The stablecoin is popular in Europe, Asia, and Latin America, where roughly 90% of its investors are.

To meet demand, centralized exchanges like HTX have listed USD1 and offered zero-fee BEP-20 withdrawals. Over 99% of USD1's supply is on Binance's BNB Chain, with a minor fraction on Ethereum.

USD1 joins a $231 billion stablecoin market controlled by Tether (USDT) and Circle (USDC), which control over 90% of the market.

USD1's early success implies a growing worldwide market for government backed or alternative stablecoin models, especially as geopolitical and legal upheavals shape digital banking.

In order to boost on-chain adoption, WLFI held a community vote to airdrop USD1 to $WLFI holders, which received 99.97% acceptance within hours.

WLFI denies Trump family participation despite worries about political links and foreign support. WLFI has raised $550 million since 2024 and is positioning USD1 to confront USDT and USDC.

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